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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: ali who wrote (26160)	1/14/1999 4:33:00 PM
From: Hawkmoon	Read Replies (3) \| Respond to of 116764

What actually has to happen is for the common man to say enough is enough with your cheating Ali, Do you know why they put facets on the edges of quarters, as well as silver and gold dollars and other coins? It seems that at one time cheats would shave off small amounts of the precious metal from coin currencies stamped from these metals. It was only after the gov't caught wind that someone was "shaving" their coins thus "cheating" the people who were accepting these coins. The point being that humans were no more honest, dishonest, than they are right now. And gold only had value because people perceived it did since it had been the historical "reserve currency" into which everything could readily be converted. The dollar currently serves this rold, and T-Bills are the ultimate safe haven for holders of dollars while other countries languish with huge debts and no one willing to loan or invest the money to preserve their capital markets. As the world's current reserve currency we enjoy the luxurious position of being the last economy that investors will totally throw in the towel on. We're certainly more secure a haven than Europe. So while people perceive this relative safety in the US, they will continue to buy our bonds and hopefully our stocks. This will strenghthen the dollar later this year, force interest rates lower, whereupon the Gov't can refinance its debt at lower interest rates. But eventually the storm will overtake us and drive us into the depths of depression whereupon people will find themselves forced to consider gold as the US economy buckles under the economic pressures, the Fed is forced to print money in order to prime the economic pump, and inflation then takes us by the hand. Gold will then shine very brightly (unless the Gov't confiscates it). I was looking at the price of HM that Richard posted. Note that HM held up rather well throughout the crash or '29, declined a bit, but then began to take off in '31 as the gov't commenced deficit spending programs to prime the pump. That does not beckon well for those expecting a huge upswing in the price of gold. I'm not convinced that sitting in gold isn't basically sitting on dead money, or at best a comatose commodity until the deflationary phase has ended and the CRB has completely bottomed. Finally, I am beginning to wonder about the Fed's maneuvers in the gold markets. They don't want gold to go too high as that would signify a weakness of perception towards Fiat money. Yet neither do they want gold to go too low as that would signify that prices are going through the floor. They are certainly trying to balance on a very tight wire. Regards, Ron